Wachovia Securities Raided

Wachovia is a popular bank in a state that I visit often and thats how I associate it.

Interestingly, Wachovia Securities (not sure if they are related to the bank), but formerly also known as AG Edwards, was raided in a surprise move by the Missouri regulators.

Securities regulators from six states raided the Wachovia Securities headquarters in St. Louis on Thursday as part of a probe for the investigation of the bank’s sales of auction-rate debt.

The office of Missouri Secretary of State Robin Carnahan said a team of 10 regulators entered the headquarters seeking information about sales practices, internal evaluations of the auction-rate securities market and marketing strategies. More than a dozen subpoenas were also issued.

All this was brought on by Wachovia Securities when the company failed to comply with information requests from Missouri securities regulators.

No surprises here. You ignore orders from regulators or treat them with disdain, this is bound to happen. Audits in this country mean you better pull up your socks and do what is right. Ignore them or get irresonsible about them and your days are numbered.